Droughts Push Soft-Commodity Buys to Highest Since 2008: Chart

Tighter supplies have pushed up prices for soft commodities -- five non-grain crops ranging from cotton to orange juice. The rally has attracted more investor buying, pushing combined open interest, or tally of outstanding futures, to the highest since 2008. That leaves markets including sugar and coffee vulnerable to high volatility, especially if hedge funds exit bullish positions, said Lara Magnusen, a La Jolla, California-based portfolio manager at Altegris Advisors LLC.

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